A hospital arranges with an hmo to provide hospital care to


A hospital arranges with an HMO to provide hospital care to the HMO members at a specific rate per member, per month. During June, the HMO paid the hospital $ 850,000, in accordance with the agreement. The hospital cost accounting records showed that, if it had billed the HMO in accordance with its established billing rates, it would have billed the HMO $ 975,000. Prepare the appropriate journal entry ( or entries) to record this transaction.

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Accounting Basics: A hospital arranges with an hmo to provide hospital care to
Reference No:- TGS01159251

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